Focus on the long term: neither one shot nor offshore

Priority

to the long-term

Dennis Fournier, you are the DSI [IT Services Director] of Lagardère Travel Retail France. Everyone is familiar with the Relay shops; can you tell us more, however, about LTRF?

Denis Fournier: Lagardère Travel Retail is one of the two branches of the Lagardère group. It is now considered to be the global leader of the industry. It operates 4,800 stores in the world. Present in 39 countries, it brings together 25,000 people and generates an overall revenue of 5.5 billion Euros. In France, that means 900 stores, not counting duty-free, with locations in bus and train stations, ports, hospitals and Métro [subway] under the Relay banner.

Without going into the details of the IS, a few salient points?

DF: We need to closely monitor the activity of the points of sale, all under franchise status. Within the framework of contracts evolving over time, we compensate thefranchisees applying complex rules, such as store appearance conditions or minimum guaranteed revenue. We also manage the compensation of the managers, who are our employees. It lies on a fixed base salary, revenue and markdown incentives. Likewise, we ensure the management of stocks and supplies. Our shops bring together a very wide variety of products in six categories: Newspapers and magazines, books, tobacco and similar products, souvenir gifts, packaged food and catering. This leads us, among other things, to manage agreements with 5,000 suppliers who include several different discount clauses in their large-scale distribution contracts.

What needs led you to FiveForty°?

DF: We needed to be supported on the right strategic development choices with the best optimizations of our information system.

What were your expectations before starting this collaboration?

DF: We needed partners capable of operating on our behalf the best possible technological monitoring. We had neither the in-house people, nor the will to recruit them elsewhere. In short, we needed consultants at the cutting edge, able to participate in the design, to produce and develop the appropriate options.

How did Lagardère TR come to work with FiveForty°?

DF: The founders of this Microsoft Solutions consulting firm were well-known and recognized people. We had met a young consultant a few years ago and had appreciated his involvement on our ERP.

Having become a partner at FiveForty°, it was an obvious choice to continue working with him and his teams.

Basically what motivated your choices?

DF: You know, "one shot" and "offshore" are not how we do things at Lagardère. Even though it's not easy to find them, we prefer partners that are able to provide competence and value on the duration. This long-term, long-established relationship, combined with the technical skills the FiveForty° consultants offered us, comforted our choice. And then their size guaranteed us stakeholder stability.

"Neither one shot, nor offshore"

Do the technical interventions and the relationship match your expectations?

DF: Yes, because the way FiveForty° operates is consistent with what we are looking for. A structure on a human scale with great ease of dialogue.

What conclusions do you draw from this first collaboration?

DF: On the AX part, the results are positive. We made the legacy systems evolve how the company needed them to, at a very reasonable cost. Nonetheless, we will have to power up on the technological watch component and clearly identify together how we will embrace tomorrow.

What do you like about FiveForty°?

DF: The quality of their human relationship, their size and capacity to do a fine audit of upcoming IT trends.

What do you think are areas for improvement?

DF: If progress continues at this rate, it may be necessary to consider strengthening support at the client level. And why not also add one or two strings to the FiveForty° bow? Anything can be envisioned.

If you had to recommend FiveForty° to a DSI colleague what would you say?

DF: Their number one ace is undoubtedly their nimbleness thanks to the profiles and personality of the people who make up FiveForty°. They also have very senior consultants who can to play their score on the duration.

What would you suggest FiveForty° be vigilant about?

DF: Their strength lies in their team. And, in the progression which is theirs, they must be careful, recruiting-wise, not to introduce a Trojan horse into their team. With people that sell themselves well in interviews, it is not always easy to detect personalities who will match in the long term with the spirit of the house.

"A different corporate culture"

For you, what makes them different from other BTCs? [Business and Technology Consultants]

DF: Again, it’s the men and women who are part of this company that make this difference. The FiveForty° culture is that of its founders. This originality, in comparison with other companies that are more oriented to “business at all cost” models, not a guarantee of serenity on the long term, must be preserved.

Three words to sum up FiveForty°?

DF: Corporate culture, human relations, nimbleness of action.

On a scale of 1 to 5, what score for your relationship?

DF: : 4, so as to maintain the improvement goals. One of the FiveForty° promises!

Priority to the long-term

Dennis Fournier, you are the DSI [IT Services Director] of Lagardère Travel Retail France. Everyone is familiar with the Relay shops; can you tell us more, however, about LTRF?

Denis Fournier: Lagardère Travel Retail is one of the two

branches of the Lagardère group. It is now considered to

be the global leader of the industry. It operates 4,800 stores in

the world. Present in 39 countries, it brings together 25,000 people and generates an overall revenue of 5.5 billion Euros.

In France, that means 900 stores, not counting duty-free, with

locations in bus and train stations, ports, hospitals and

Métro [subway] under the Relay banner.

Without going into the details of the IS, a few salient points?

DF: DF: We need to closely monitor the activity of the points of

sale, all under franchise status. Within the framework of

contracts evolving over time, we compensate the franchisees

applying complex rules, such as store appearance conditions

or minimum guaranteed revenue. We also manage the

compensation of the managers, who are our employees.

It lies on a fixed base salary, revenue and markdown incentives.

Likewise, we ensure the management of stocks and supplies.

Our shops bring together a very wide variety of products in six

categories: Newspapers and magazines, books, tobacco and

similar products, souvenir gifts, packaged food and catering.

This leads us, among other things, to manage agreements with

5,000 suppliers who include several different discount clauses

in their large-scale distribution contracts.

What needs led you to FiveForty°?

DF: We needed to be supported on the right strategic

development choices with the best optimizations of our

information system.

What were your expectations before starting this collaboration?

DF: We needed partners capable of operating on our behalf

the best possible technological monitoring. We had neither the

in-house people, nor the will to recruit them elsewhere. In short,

we needed consultants at the cutting edge, able to participate

in the design, to produce and develop the appropriate options.

How did Lagardère TR come to work with FiveForty°?

DF: The founders of this Microsoft Solutions consulting firm were well-known and recognized people. We had met a young consultant a few years ago and had appreciated his involvement on our ERP. Having become a partner at FiveForty°, it was an obvious choice to continue

working with him and his teams.

Basically what motivated your choices?

"Neither one shot, nor offshore"

Do the technical interventions and the relationship match

your expectations?

DF: Yes, because the way FiveForty° operates is consistent with

what we are looking for. A structure on a human scale with

great ease of dialogue.

What conclusions do you draw from this first collaboration?

DF: On the AX part, the results are positive. We made the

legacy systems evolve how the company needed them to, at a

very reasonable cost. Nonetheless, we will have to power up on

the technological watch component and clearly identify

together how we will embrace tomorrow.

What do you like about FiveForty°?

DF: The quality of their human relationship, their size and

capacity to do a fine audit of upcoming IT trends.

What do you think are areas for improvement?

DF: If progress continues at this rate, it may be necessary to

consider strengthening support at the client level. And why not

also add one or two strings to the FiveForty° bow? Anything

be envisioned.

If you had to recommend FiveForty° to a DSI colleague

what would you say?

DF: Their number one ace is undoubtedly their nimbleness

thanks to the profiles and personality of the people who make

up FiveForty°. They also have very senior consultants who can

to play their score on the duration.

What would you suggest FiveForty° be vigilant about?

DF: Their strength lies in their team. And, in the progression

which is theirs, they must be careful, recruiting-wise, not to

introduce a Trojan horse into their team. With people that sell

themselves well in interviews, it is not always easy to detect

personalities who will match in the long term with the spirit of

the house.

"A different corporate culture"

For you, what makes them different from other BTCs? [Business and Technology Consultants]

DF: Again, it’s the men and women who are part of this

company that make this difference. The FiveForty°culture is

that of its founders. This originality, in comparison with other

companies that are more oriented to “business at all cost”

models, not a guarantee of serenity on the long term, must be

preserved.

Three words to sum up FiveForty°?

DF : Corporate culture, human relations, nimbleness of action.

On a scale of 1 to 5, what score for your relationship?

DF: 4, so as to maintain the improvement goals. One of the FiveForty° promises!

Paris - FRANCE / New York - USA

contact@fiveforty-group.fr

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